Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors

Brownen-Trinh, Ruby; Orujov, Ayan

doi:10.2139/ssrn.3742730

Cited by 2 publications

(2 citation statements)

References 42 publications

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“…Additionally, an increasingly vocal and organized group is retail investors that trade through, for example, the Robinhood trading platform and follow investment ideas and sentiment on reddit/wallstreetbets , the social news and discussion platform. In a related study, Brownen‐Trinh and Orujov (2020) find that the number of retail investors holding stocks in companies that expressed public support of the BLM campaign increased by about 2%.…”

Section: Empirical Analysis Of Stock Returns During the Blm Protestsmentioning

confidence: 99%

Boardroom racial diversity: Evidence from the Black Lives Matter protests

Pajuste

Dzabarovs

Madesovs

2022

Corporate Governance

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Research Question/IssueThis paper provides evidence that the Black Lives Matter (BLM) protests that followed the killing of George Floyd on May 25, 2020, brought immediate changes to the US corporate boards.Research Findings/InsightsUsing a sample of S&P 500 index companies, we find that companies with higher representation of Black directors are associated with higher stock returns during the mass BLM protests. Within 1 year after the BLM protests, 10.7% of the sample firms hired at least one Black director (compared to having no Black representation on the board before the protests), and 31% of the newly appointed directors were Black. We find that companies typically add new diverse directors by increasing the board size, but there is no evidence of negative value effect or decreasing director quality.Theoretical/Academic ImplicationsWe have observed increased disclosures of racial equity topics in the proxy statements, as well as significant increase of Black director representation in the boards. In the meantime, we do not find any valuation or stock performance effects related to boardroom racial diversity 1 year after the BLM protests.Practitioner/Policy ImplicationsMass protests play an important role in shaping corporate governance responses. The finding that racial diversity can be increased at an unprecedented speed without loss in value is consistent with the view that a boost in boardroom diversity is possible under strong multichannel pressure from investors, consumers, employees, and regulators.

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Section: Empirical Analysis Of Stock Returns During the Blm Protestsmentioning

confidence: 99%

Boardroom racial diversity: Evidence from the Black Lives Matter protests

Pajuste

Dzabarovs

Madesovs

2022

Corporate Governance

View full text Add to dashboard Cite

show abstract

“…Approaching its anniversary, ‘Black‐Out‐Tuesday’ resonates in our minds, as the world digitally protested racial injustice 5 . Although many universities posted a black square in virtual solidarity, it is unclear how many will uphold their promises in 2021.…”

mentioning

confidence: 99%

Inequalities of pandemic proportions

Okhiria

Rahnejat

2021

The Clinical Teacher

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Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors

Cited by 2 publications

References 42 publications

Boardroom racial diversity: Evidence from the Black Lives Matter protests

Boardroom racial diversity: Evidence from the Black Lives Matter protests

Inequalities of pandemic proportions

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